The Road Amendment will change the position of the alternative carrier driver to an actual taxi driver

The application instead of a taximeter, and a sticky sign instead of the ‘taxi’ light, will suffice

After a year of preparation, the government will discuss an amendment to the Road Transport Act, which sets new rules for taxi drivers.

Existing legislation has not accounted for
the use of mobile applications upon which alternative taxis, such as Uber or
Taxify, rely. This is about to change.

“The amendment is intended to legalize
the use of applications as another type of taxi service, which will be
discussed by the government during February, and we expect it to become
effective in the second half of this year,” says Transport Ministry
spokesman, Lenka Rezková.

Alternative taxi drivers of today often
fail to comply with a number of obligations. In particular, they do not use
taximeters and do not have their cars equipped with a ‘taxi’ light. According
to the draft of the amendment, the taximeter will no longer be obliged. Drivers
are equipped with an application whereby the passenger confirms that they agree
to a pre-determined price prior to the commencement of the journey. “The ‘taxi’
light will be a privilege of only those who want to transport passengers
outside the application, from the street,” says Rezková. Alternative drivers
will have to have a sticker placed on the car, which makes it clear at first
glance that they provide taxi services.

All taxi operators will have to have a
trade license and have their vehicle registered as a taxi, for which other
obligations are attached. Whoever does not follow the rules will face more
severe sanctions. Alternative taxis began to increase the demands on their
drivers as of last year. “We’ve changed the way we do business, and we
only accept drivers with a valid taxi license,” an Uber representative told
HN. The same measure was introduced by Taxify this year, which no longer
accepts amateur drivers. They require a trade license and their car to be
registered as a taxi vehicle. The use of unregistered drivers is one of the
main points that was argued by both the authorities and the traditional taxi
drivers.

It will be five years this August since the
Czech taxi industry began to change significantly. American company Uber
entered Prague in August. While the taxi drivers protest at large in Boston,
Paris, London, or even Madrid, the Czech drivers were not at all nervous of the
entrance of the new competitor in 2014. Later, however, the situation has
changed. Uber has taken over a considerable number of clients of traditional
taxi drivers. According to the association of Czech taxi drivers, it was more
than half of all orders in Prague. The market has changed dramatically. While
the main role used to be played by the car, mobile applications became more and
more important. In 2015, other players who have built their business on a
similar model as Uber have joined the market. First, the Czech entrepreneurs
launched the Liftago service, followed by the Estonian Taxify and finally the
Slovak Hopin Taxi.

Local taxi drivers soon got into the same
situation as the drivers in other world capitals years ago. So they began
protesting Prague – once they blocked the roads around the airport, they slow
paced through the highway. Uber remained the biggest enemy.

Traditional taxi drivers have complained
and are still complaining that alternative taxi drivers are failing to comply
with statutory obligations. They do not have to pass the topography examination,
they are not registered among the taxi drivers, and it is hard to prove that
they pay taxes properly.

It was the question of paying taxes last
year to a greater extent with Uber to deal with the Treasury. The American
company eventually promised to join the EET pilot program.

All new registered drivers driving for Uber
are using electronic revenue records since last October. However, the number of
drivers is not specified by the firm. There are roughly 1500 Uber drivers in
the Czech Republic. Further, information on the progress of the pilot project
has not yet been provided by the state.

“We cannot share concrete information
about the agreed cooperation, but we appreciate the positive relationship
because it is based on obtaining data for correct tax identification and
determination and helping to eliminate the unequal conditions in the
competitive struggle of the affected market segment,” says Klára Křehlová.

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